Green methanol aviation market seen reaching $3.25 billion by 2030

The Business Research Company says the green methanol fuel for aviation market is set for rapid growth as airlines and fuel makers push harder for low-carbon alternatives. The market is projected to rise from $1.02 billion in 2025 to $3.25 billion by 2030, led by rising sustainable aviation fuel demand and expanding renewable fuel production.

Why it matters: - Green methanol is emerging as a low-carbon feedstock for sustainable aviation fuels, giving airlines and fuel producers another path to cut lifecycle emissions. - The market's rapid growth signals stronger commercial momentum behind aviation decarbonization. - Demand growth could influence fuel supply chains, production investment, and carbon-reduction strategies across the aviation sector.

What happened: - The Business Research Company released its Green Methanol Fuel in Aviation Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035. - The report estimates the market at $1.02 billion in 2025. - The report projects the market will reach $1.29 billion in 2026. - The report forecasts the market will climb to $3.25 billion by 2030. - The report covers regions including Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa. - North America held the largest regional share in 2025. - Asia-Pacific is projected to be the fastest-growing region over the forecast period.

The details: - The report links 2026 growth to rising demand for low-carbon aviation fuels, government decarbonization initiatives, renewable fuel investment, wider sustainable aviation fuel blending, and efforts to reduce greenhouse gas emissions. - The report says future growth will be driven by scaling commercial green methanol production, stronger demand for sustainable feedstocks, more investment in renewable hydrogen infrastructure, advances in carbon capture and utilization, and broader net-zero strategies in aviation. - The report highlights expected trends including more sustainable aviation fuel facilities, higher use of renewable carbon-based feedstocks, expanded green methanol production capacity, greater integration of carbon capture fuel pathways, and more strategic partnerships across the aviation fuel supply chain. - Green methanol fuel for aviation is derived from renewable sources and sustainable feedstocks. - Green methanol serves as a feedstock for sustainable aviation fuels that help lower greenhouse gas emissions. - The report says the demand for sustainable aviation fuels is a major growth driver for the green methanol market. - IATA reported in December 2024 that sustainable aviation fuel production reached 1 million tonnes, or 1.3 billion liters, in 2024, up from 0.5 million tonnes the year before. - The report says that increase shows how SAF demand is supporting growth in green methanol fuel. - The source also lists new 2026 report features including market attractiveness scoring, TAM analysis, company scoring matrix graphics and tables, Excel forecasting dashboards, market hotspots infographics, key technology analysis, and updated graphics and tables. - The report offers a free sample and a full version through the sample request page and the full market report.

Between the lines: - The forecast points to a market that is moving from niche adoption toward broader commercial relevance. - The combination of policy pressure, SAF demand, and infrastructure investment suggests green methanol is benefiting from multiple demand drivers at once. - The emphasis on partnerships and production capacity suggests the biggest constraint may shift from market interest to supply buildout.

What's next: - The market is expected to keep expanding through 2030 as green methanol production scales and aviation fuel pathways mature. - Growth in renewable hydrogen, carbon capture, and SAF facilities could shape which regions and companies gain early advantage. - Regional competition is likely to intensify, with Asia-Pacific positioned for the fastest expansion.